Accounts Payable Turnover Ratio Calculator

Answers the Question

How easily can we pay off our vendors?

Calculator for Accounts Payable Turnover Ratio


What Is the Accounts Payable Turnover Ratio?

This formula is used to analyze how quickly a firm is able to address its accounts payable. Fundamentally, it's a measure of company liquidity, though it's imperfect metric as many firms choose to pay their bills later than they could.

It's often used by vendors and potential creditors in order to understand the risk of providing goods or loans without prepayment.

Why Is it Important?

Formula(s) to Calculate Accounts Payable Turnover Ratio

Common Mistakes

Also Known As

Additional Business & Financial Calculators Available